Over the previous decade, it didn’t matter much whether you left cash at the bank or put it in a money market fund, CD, Treasury, or under your mattress.

Today, though still modest, savings account rates are at their highest level since the Great Recession. Meanwhile, yields on cash alternatives have skyrocketed.

David then unpacked how 2021 has affected his views on China (made him more wary), taking us through how the government approaches which sectors to support and which to regulate. He addressed how the global surge in venture capital may lead to more dominant international companies, the mechanics around Brexit, and what sectors and trends he believes may be interesting opportunities in the years ahead.

The Fed actions in suppressing interest income is like Aesop’s fable where the wind and the sun try to see who can make a man remove his coat. The sun wins because the harder the wind blows the tighter the man holds onto his coat. Similarly, the more the Fed pushes rates lower, the more people save and the less they spend.

Last year reminded everyone that investing is hard. It can be uncomfortable and unpleasant. Market volatility can diminish willpower and cause determination to waver. The main risk is not portfolio declines. The real risk is that instincts override the discipline investors need to achieve their long-term plan.

The world runs on incentives. Often, the challenge in investing is to figure out how to entrust your money with people whose incentives are best aligned with your own.

There is a tendency, even among those who have owned Apple, to daydream about having jumped on board even earlier: "But what if I had bought Apple right after its IPO in 1980?!"

The best (though understandably frustrating) explanation for the present volatility is that stock markets are doing what they often do in the short-term: fluctuate unpredictably.

Fear of the unknown is an instinct that helps us survive, but acts against our better judgment as investors. It pushes us toward the perception of safety.

"On a daily basis, the S&P 500 trades at an all-time high 7% of the time and trades within 5% of an all-time high 36% of the time. This means that on 43% of all days, since the S&P 500’s inception, US large cap stocks were at or close to making new records. Anyone who tells you that new highs are abnormal or a reason to sell is a fool."

“Emerging markets” is an asset class of developing countries that share little in common geographically, economically, or in size. What does unite them is higher expected returns and higher risk than developed markets. 

As you may know, we're big fans of Warren Buffett. His latest annual letter to shareholders is a buffet of fantastic takeaways, one of which we already shared.

Here's some more truth:

In a handful of words, this evocative quote by Tadas Viskanta - “Market Timing is a Gateway to Cash Addiction” - cuts to the core of a psychological obstacle that thwarts many investors.